A framework for understanding

Finally, we offer a series of metrics that may be used to evaluate the prospects of a given inward investment project to contribute to levelling up, that cover both the nature of the investment, and the nature of the host economy. [...] Firstly, it highlights the relationships between FDI and the drivers of productivity, in terms of ownership structures, for example, and in turn the incentives to engage in knowledge transfer between the parent and the affiliate. [...] This illustrates the bi-modal nature of the relationship between inward investment and productivity, with these sectors being two of the highest, and two of the lowest productivity sectors in the UK. [...] 23 In the four figures below, the x axis stands for the growth rate of employment of the sectors, while the y axis represents of the growth of GVA of those sectors, with the size of the bubble denoting the number of jobs created by the investment in a given sector. [...] Is the investment for example motivated by the desire to exploit firm specific proprietary knowledge in the UK (thus generating the prospect of spillovers), is it focussed on asset or resource acquisition in the UK, or is it focussed on knowledge acquisition? It has long been understood that the first of the scenarios generates the greatest productivity gains.